Negotiate Out Lender Request For A Listing Agreement?
I was wondering if anyone has had success -- or has advice -- dealing with a lender who's asking for a listing agreement to be submitted as part of the short sale package.
Apart from asking a Realtor acquaintance to list the property (does it violate their ethics if it's listed not for the purpose of selling?), does anyone have a negotiation suggestion to persuade the lender to review package without such listing agreement?
Thanks!
Martin
Your friend would love a shot at a listing... especially if he/she can also have the sale... so I don't understand why you would say "listing if not for the purpose of selling..."
Mortgagees expect to pay a R/E commission (discounted, of course)
when entertaining a short sale proposal.
Thanks very much.
I guess I was thinking of a situation where, let's say, the market value of a home were $175,000, however, $200,000 is owing (1 mortgage only).
Thus, wouldn't I ask my realtor friend to list it at approximately $212,000 (fair market value plus Realtor commission)? Of course, being $37,000 above FMV, I'm assuming it won't sell.
I understand that the Realtor could perhaps list the home for $175,000 (if, let's say, the Realtor were to have found this buyer before me and offers to list it), with such sale subject to lender's approval. Perhaps it would find a buyer (and, perhaps, the lender would approve).
However, as an investor, I have to make a profit, so I'm not going to offer the lender fair market value as my short sale offer to them. Thus, my offer would be well below $175,000.
Hope that better explains my dilemna. I was thinking I would be listing upside down properties with little to no chance of finding buyers to pay such premiums.
Would love to hear your further thoughts on this.
Thanks!
Martin
A real estate broker's responsibility includes listing a property at it's as-is, fair market value or, perhaps at a slight discount per the instructions of the Seller.
The real estate broker can help you to determine... and justify that value.
Your job, in devising a fact based, comprehensive, and compelling Proposal will be to convince the mortgagee that it's in their best, financial interest to accept your Proposal...
All short proposals and acceptances are predicated on the as-is, fair market value of the subject... irrespective of what is owed... (except in the cases of FHA insured loans).